Phantom Assembly in SAP PP

In SAP production planning (PP), a phantom assembly refers to a semi-finished product that is used as a logical grouping of components in the bill of materials (BOM) but is not physically manufactured or stocked as a separate material. Instead, the components of the phantom assembly are directly considered in the higher-level assembly or finished product during production. Learn about Phantom Assembly in SAP PP, its role in streamlining production processes, simplifying BOM structures, and optimizing manufacturing workflows.

Key features of phantom assemblies:

1. Non-stock material:

Phantom assemblies are not stored in inventory as they are purely logical groupings used to clarify BOM structures.

 

2. Exploding the BOM:

During production order creation or planning runs (e.g. MRP), the system blows up the phantom assembly, directly including its components in the higher-level BOM. This ensures that the components are planned and procured individually.

 

3. Used in different production types:

Regularly used in make-to-order (MTO) and engineer-to-order (ETO) scenarios, where subassemblies are not separately manufactured but used directly in the final assembly.

 

4. Simplifies planning:

Phantom assembly decreases complexity in BOM maintenance by grouping commonly used subassemblies or parts.

 

5. Routing and work centers:

Phantom assemblies generally do not have their own routings or work centers. Instead, their components are manufactured according to the routing of the parent assembly or product.

 

6. Material master setting:

In the material master, phantom assemblies are designated by setting the special procurement key to 50 (Phantom Assembly) in the MRP 2 view of the material master.

 

Example Scenario

Let us consider a bicycle manufacturer where the handlebar assembly consists of the handlebar, grips, and brake levers. The handlebar assembly is not stored as a separate item but is always assembled as part of the final bicycle.

 

BOM Structure without phantom assembly:

1. i) Bicycle (FG)
2. ii) Handlebar assembly (semi-finished product)

iii) Handlebar

1. iv) Grips
2. v) Brake levers

BOM Structure with phantom assembly:

1. i) Bicycle (FG)
2. ii) Handlebar (directly added to the BOM)
3. iii) Grips (directly added to the BOM)
4. iv) Brake levers (directly added to the BOM)

By mounting the handlebar assembly as a phantom, the system automatically adds its components to the parent product’s BOM, simplifying production and planning.

 

Benefits of using phantom assemblies:

1. i) It reduces the need to create and manage stock for intermediate products.
2. ii) It can streamline BOM maintenance and production processes.

iii) It can facilitate the grouping of reusable subassemblies or logical kits.

 

Challenges:

1. i) Limited applicability if the subassembly needs to be stored at any point.
2. ii) It requires careful planning in scenarios where phantom assemblies are used across multiple production processes.

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Author:-

Prahlad Pawar

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